TJ Maxx Card going up to 34.99% interest just got a mailed notice, whaaaat - when is it a usury offense?

[LuvOrlando]

First it was Macys jumping the shark now TJ Maxx Card going up to 34.99% interest, whaaaat

I don't carry a balance but when the kids were young I did for back to school shopping so this is downright scary to me on behalf of young families

 

[tony67]

That is beyond ridiculous.

These same banks pay next to nothing on your savings account - even the high yield accounts are nothing compared to the interest rates on CC.

Oh and when they fail - we get to bail them out as well.

 

[gottalovepluto]

When is it usury? If you charged someone 35% interest it would usury.

Financial institutions like banks are exempt from usury laws.

Gotta love the level financial playing field in America!

 

[cvjw]

I just wouldn’t use it. They make 0% if you pay it off every month or just don’t use it at all.

 

[Pink Partridge]

I just wouldn’t use it. They make 0% if you pay it off every month or just don’t use it at all.

Same. But some people carry a balance and right now, times are tough for many. So let's say someone went and charged their kids' school clothes last month and planned to pay the balance down in time for Christmas. 34.99% interest is going to make that very difficult.

This is horrible.

 

[LuvOrlando]

When is it usury? If you charged someone 35% interest it would usury.

Financial institutions like banks are exempt from usury laws.

Gotta love the level financial playing field in America!

Who else would usury laws apply to if not financial institutions? (I know that sounds wise a--y but is not meant as such. I think there were laws enacted after the Great Depression to cover banking to prevent the exploitation of Americans so we could recover as a country, and we did... until things got dismantled one by one by the people still sitting in charge for the past half century....one more bone to pick.

 

[CAPSLOCK]

What was it before this increase? IMO it's a lot more egregious if it's a big jump. If it was already at 33% or some such, then it's kind of whatever/expected.

These same banks pay next to nothing on your savings account

This is beyond frustrating. You have to have a pretty sizeable chunk of change sitting around in order to garner any useful interest.

I also love it that they put your payments to the lower interest rate stuff first.

This is why I have never carried a balance on a credit card. It's absurd the shady practices they get away with.

 

[The Mayor]

US credit card debt is $1.142 TRILLION in the second quarter of 2024!!! Highest it's been since they started keeping track in 1999!

Many families are using CC to be able to afford groceries, gas and other necessities. It's the elephant in the room that most people don't want to talk about this election season.

https://www.lendingtree.com/credit-cards/study/credit-card-debt-statistics/

 

[LuvOrlando]

So there are limits set by the states, I don't think we have been paying enough attention because as a country we are getting wrecked. So many things people are going on about and meanwhile our wealth & ability to prosper is being siphoned off day by day, if we can't pay taxes the whole thing collapses, the more we can spend and pay the better and stronger we are.

Seems National Banks are free to charge whatever is in their home state regardless of where the customer is, so I'll guess that state is the most friendly state and ALL the banks call it home wherever it is.... always a loophole when you have friends and snuggle buddies in high places

https://www.bankrate.com/credit-cards/zero-interest/does-law-cap-credit-card-interest-rates/#:~:text=Key takeaways,interest rate for credit cards.

An attempt to curtail bad decisions, and yet 2008 and last year happened so we are, indeed, paying attention to the wrong things.

https://www.investopedia.com/articles/03/071603.asp

 

[BrianL]

Same. But some people carry a balance and right now, times are tough for many. So let's say someone went and charged their kids' school clothes last month and planned to pay the balance down in time for Christmas. 34.99% interest is going to make that very difficult.

This is horrible.

Can they apply the higher interest rate to an existing balance though? I am not sure, but I don't think they can do that unless it is due to an introductory rate in which case it was disclosed ahead of time or possibly as penalty for late payment.

 

[LuvOrlando]

Can they apply the higher interest rate to an existing balance though? I am not sure, but I don't think they can do that unless it is due to an introductory rate in which case it was disclosed ahead of time or possibly as penalty for late payment.

The letter made it sound like it could, although I got annoyed and shredded it then couldn't find it online, maybe someone else has it

 

[LuvOrlando]

I just wouldn’t use it. They make 0% if you pay it off every month or just don’t use it at all.

Some families rely on the cards as a buffer to spread out back to school expenses over a few months leading up to Christmas, I know I did back then and also for collecting things for college. The card offers money back which is tempting, so does Macys - I wonder if this will be the way of all cards that offer money back as a clawback.

 

[lanejudy]

In my experience, store cards have always had higher interest rates than a major visa or Mastercard. I used to spread out the back to school buying starting in summer so the balances could be paid in full. I refuse to pay credit card interest and always have. Even when living on a shoestring budget I used credit cards sparingly. I shopped church bazaars and thrift stores for back-to-school clothes and only bought 1-2 brand new outfits each fall.

 

[NotUrsula]

FYI, Most US usury laws were repealed during the Reagan administration, paving the way for the rise of the big payday loan business chains. It's pretty much anything goes now for unsecured consumer credit.

I use store cards for discounts and rebates, but I never carry a balance on them. If you really need to do that for some short-term reason, best to see if you can get a regular credit card on a no-interest new account deal, and then transfer over the store balances so that you have a no-interest few months to pay it off. (And of course, don't use the regular credit card to run up more debt; stick it in the literal freezer in a block of ice if that's what it takes. When the balance is paid off and the interest rate kicks in, call the issuer and cancel the card.)

The TJX reward program is great if you pay off the balance every month, but very much not good if you carry a balance. I like Chase cards for really large purchases because I can choose to pay a flat-rate finance charge rather than the regular interest rate if I need to spread it out over a few months. (It's available for purchases exceeding $100, but that's too small to get a benefit; where it becomes useful is emergercency purchases over $2K.)

 

[fla4fun]

People may have to go back to layaway, where it’s offered, to spread the payments out without the interest, or begin putting money away a few months before they know they need to buy school uniforms and supplies instead of coming up with the funds afterwards. It was easier when parents didn’t have to buy specific clothes for public schools and when parents or teachers didn’t have to make up the deficit in supplies that the district can’t provide. My mom made most of my clothes when I was in elementary school, or altered hand me downs. It’s more difficult to do that these days with all the specific requirements.

 

[CAPSLOCK]

Can they apply the higher interest rate to an existing balance though?

No, BUT they apply your payment to the lower rate balance while all the new monthly interest charges are tallied separately at the higher rate. So it slowly transitions to the higher interest rate, as each month you pay some on your lower rate balance while the interest charges are added at the higher rate.

It really is criminal. Brilliantly criminal.

 

[cabanafrau]

People may have to go back to layaway, where it’s offered, to spread the payments out without the interest, or begin putting money away a few months before they know they need to buy school uniforms and supplies instead of coming up with the funds afterwards. It was easier when parents didn’t have to buy specific clothes for public schools and when parents or teachers didn’t have to make up the deficit in supplies that the district can’t provide. My mom made most of my clothes when I was in elementary school, or altered hand me downs. It’s more difficult to do that these days with all the specific requirements.

Does layaway exist anymore? I think it's been at least 25 years, or more, since I've seen it mentioned.

 

[BrianL]

No, BUT they apply your payment to the lower rate balance while all the new monthly interest charges are tallied separately at the higher rate. So it slowly transitions to the higher interest rate, as each month you pay some on your lower rate balance while the interest charges are added at the higher rate.

It really is criminal. Brilliantly criminal.

Okay, right - that makes sense. It's awful, but it makes sense.

 

[sam_gordon]

.

 

[fla4fun]

Does layaway exist anymore? I think it's been at least 25 years, or more, since I've seen it mentioned.

To be honest, I don’t know. Most places got rid of it except during the holidays, but I think more places are going to the Buy Now - Pay Later model. Some of these are still interest free if the payment period is small (think up to eight weeks) but longer payment periods they are charging interest. I know Walmart was one of the last holdouts to have layaway, but they stopped in 2021. I have never used it myself, but have known people who did. If it is an option, I would use it before using a credit card if I couldn’t pay the card in full when the bill comes.